Nokia Halves US Price of Lumia 900

Steve McCaskill is editor of TechWeekEurope and ChannelBiz. He joined
as a reporter in 2011 and covers all areas of IT, with a particular interest in telecommunications, mobile and networking, along with sports technology.

Nokia has slashed the price of its Lumia 900 smartphone in the US, less than three months after it launched on American operator AT&T. Rather than being sold for $99.99, the smartphone will now cost just $49.99 when bought with a contract.

“This is a normal strategy that is put in place during the lifecycle of most phones, and allows a broader consumer base to buy this flagship device at a more accessible price,” Nokia told TechWeekEurope, although it did not confirm whether or not the UK would receive the price cut.

Lumia 900 – a beached flagship?

However, given Nokia’s current troubles, it is likely to add speculation about the company’s smartphone strategy. Last month, it announced that it was going to reduce its workforce by around 10,000 and streamline its research and development operations as part of a restructuring programme. It has also sold off its luxury handset subsidiary Vertu as it looks to jettison its non-core assets.

Nokia has pledged that although the Lumia 900 will not receive an upgrade to Windows Phone 8, it will continue to support the handset with significant updates.

Nokia’s share of the global smartphone market has decreased dramatically in recent years and it signed a strategic partnership with Microsoft to produce phones running Windows Phone last year. The Lumia 900 debuted in the UK in May as its new flagship.

Despite this, developers are optimistic about Nokia and Microsoft’s chances of succeeding with Windows Phone 8. Nokia has released a Symbian phone recently, the PureView 808, which boasts a 41 megapixel camera. However, it will not be carried by any of the major UK operators.